This paper examines white collar crime from the perspective of security management, tracing the concept from Edwin Sutherland's 1939 formulation through contemporary cases including Bernard Madoff's Ponzi scheme and Jordan Belfort's brokerage fraud. It discusses the unique investigative challenges white collar crime presents — including its invisibility, the social and political power of offenders, and the difficulty of gathering evidence — and analyzes the roles of informants and whistleblowers in building successful prosecutions. The paper also considers how media portrayals and societal attitudes shape public understanding of financial crime and complicate enforcement efforts.
The masses are often inclined to associate criminal behaviors with individuals who are socially and economically disadvantaged. However, individuals who are part of privileged socioeconomic communities are also likely to engage in criminal activities. "The types of crime may differ from those of the lower classes, such as lawyers helping criminal clients launder their money, executives bribing public officials to obtain public contracts, or accountants manipulating balance sheets to avoid taxes." (Gottschalk 11) Security practitioners experience considerable difficulty in dealing with white collar crime because of the many ways it differs from conventional crime.
Society is in need of professionals in the security industry, and such roles are likely to remain in high demand regardless of economic circumstances. Factors like recession do very little to affect this industry, given that there is always a significant need for persons who can effectively combat crime. "The need for educated and trained security officers and administrators is increasing with the need to counteract terrorism, computer crime, embezzlement, employee theft, drugs and violence in the workplace, fraud, and shoplifting." (Fischer, Halibozek, & Walters 41) Numerous organizations around the world have actively involved themselves in recruiting security professionals because of the substantial benefits this brings.
The idea of white collar crime emerged in 1939, when Edwin Sutherland devised the concept with the intention of describing environments where crime was presented as an appealing option. Sutherland believed that people in privileged circles were provided with information they could exploit. While many persons were hesitant about committing crimes after encountering such opportunities, others did everything in their power to increase their profits. "In particular, differential association theory proposes that a person associating with individuals who have deviant or unlawful mores, values, and norms learns criminal behavior." (Gottschalk 11)
In spite of its relatively specific definition, white collar crime is a complex concept that encompasses a wide range of cases. Especially when considering contemporary society, the existence of the Internet makes it possible for a large number of individuals to engage in white collar crime. These people no longer have to belong to the upper class, and they do not necessarily have to be respected by their peers. "In Sutherland's definition of white-collar crime, a white-collar criminal is a person of responsibility and high social status who commits crime in the course of his or her occupation." (Gottschalk 12)
In order to understand white collar crime fully, it is helpful to divide it into several categories, each referring to a particular type of criminal. This paper focuses primarily on the conventional idea of a white collar criminal. Although they are not the only ones who engage in white collar crime, business managers and executives who do so tend to perform actions that are far more dramatic in scale and that trigger strong reactions from the general public.
In spite of their privileged position, white collar criminals are in some respects more likely to be identified because of their social status — particularly those who are public figures. Even so, such persons are typically well-acquainted with strategies they can employ to evade capture, which makes them especially evasive.
In order to gain a thorough understanding of white collar crime, one must recognize that this type of offense needs to be addressed from the perspective of the nature of the crime rather than the offender's social status. As a security manager, one is likely to experience significant problems in dealing with white collar crime because access to verified methods of detecting whether criminal activity exists is rarely straightforward, and the degree to which a crime has affected a person or institution may be unclear. "A difficulty in detecting its presence is the fact that a victim is not aware that he is being victimized, and when discovery is made, it may be too late to take effective action against the offender." (Fay 194) White collar crime can be largely regarded as an invisible form of crime, which underscores the problems a security manager faces when attempting to catch financial criminals.
In addition to its invisibility, white collar crime is made more difficult by two other factors. On the one hand, the public is often hesitant to cooperate with authorities and provide information about suspected criminals. On the other hand, security managers frequently struggle to keep pace with the complex strategies adopted by white collar criminals. Both of these factors make investigations especially difficult and allow criminals to anticipate law enforcement moves, leaving them practically prepared to deal with almost any security-related challenge they encounter.
When investigating a white collar crime, a security manager has no conventional crime scene to work from and must find clues in places that would not ordinarily attract attention. In contrast to a conventional crime, a white collar crime is typically still in progress when discovered, and criminals are careful not to attract attention while maintaining fronts that confuse authorities and make their operations appear entirely legitimate.
During an investigation involving white collar crime, a security manager must first establish precisely what crime has been committed before working backward through the evidence to understand its key elements. The following characteristics are typically important when considering white collar crime:
Given these characteristics, it can be especially difficult for a security manager to pursue white collar criminals. "Indeed, the economic and political power of white-collar offenders is important precisely because it provides them with access to opportunities and facilitates their ability to deceive, to conceal, and to abuse trust." (Benson & Simpson 88) White collar criminals can go so far as to alter the political and economic environment in which they operate, lobbying for more permissive laws and ensuring that authorities have little to no access to incriminating evidence.
Society as a whole can assist authorities in fighting white collar crime by making it harder for criminals to exploit opportunities that arise from their involvement in influential circles. White collar crime is often associated with individuals in positions of power, as those who become prominent in their communities gradually realize they can leverage their status to generate profits more rapidly. Powerful individuals frequently find themselves in positions where they can exploit the public and access finances with minimal effort (Benson & Simpson 88).
"How power and status enable evasion of justice"
"Belfort, Madoff, and media portrayal of offenders"
"Informants, whistleblowers, and enforcement approaches"
White collar crime is a serious offense in contemporary society, and it is essential that law enforcement agents and security managers are equipped to handle cases involving this type of illegality. While white collar crime typically involves multiple participants, it frequently goes undetected for extended periods. Its inherent invisibility must be addressed through sustained cooperation with informants — a particularly critical element in bringing white collar criminals to justice.
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